This invention relates generally to mobile commerce and more particularly to payment transactions using a mobile device.
Mobile devices are being design more and more to provide mobile services. A class of mobile services is called Mobile Commerce—also know as M-Commerce or Mcomm. Mobile devices may also be called mobile terminals or the term to be used in the present application—Mobile Station. Mobile Commerce may be, but is not limited to, where a Mobile Station is used to initiate, engage and complete a transaction at a merchant's location.
Mobile Commerce payments may generally fall into one of two categories:                Local Payments: These are payments that are processed at the register or Point-of-Sale (POS) terminal or station using a proximity technology. One example of such proximity is Radio Frequency Identification (RFID), which will be further described below. Other technologies which may be used examples are Bluetooth (BT), Micro-impulse Radar (MIR), UltraWide Band (UWB), Infrared (IR) and the like.        Remote Payments: These payments are processed remotely, away from the register and POS. These types of payments typically rely on network-based technologies such as Wireless Access Protocol (WAP) and Hypertext Transport Protocol (HTTP).        
One of the strongest areas of growth is the area of local payments. Benefits like fast processing and electronic coupons make local payments very appealing to merchants who need to turn customers quickly and generate customer loyalty without compromising quality or service.
The majority of Mobile Commerce applications being developed focus on local payment solutions, which target Quick Service Restaurants (QSR) and other retail merchants.
Generally, there may be two different types of merchant transactions:                Register transactions (i.e. fast food, retail, etc.);        Assisted transactions (i.e. sit-down restaurants).        
Register transactions are completed at the register. Register transactions are completed with the customer's payment device never leaving the customer's possession. Also, register transactions are completed with their final total. Typically, there may be no additional charges added to the final total. Examples of additional charges include tips, additional food orders and the like.
In certain food service establishments, the meal may consist of multiple food orders, in which it would be desirable to have a running total in order to know how much money is being spent on the meal. An example of such establishments are Din Sum and Sushi restaurants. In these establishments, trays of food items are presented to the diner throughout the meal. As the meal progresses there is a need to know that the consumer is not spending more than desired so that the consumer is not shocked by the final total. A bar tab is also an example in which a running cost total would be desirable.
Assisted transactions are different in that the customer's payment device leaves the customer's possession. Also, the transaction value initiated at the close of the sale may be different than the final value because additional charges, such as tips and the like may be added to the transaction value. Having the payment device leave the customer's possession increases the danger of identity theft. For example, the information on a magnetic strip of a credit card may be copied by a waiter using a portable reader and used many time for bogus transactions.
Most Mobile Commerce applications today that utilize local payments are designed for register transactions. Therefore, most Mobile Commerce applications do not adequately enable assisted transactions and utilize the power of mobile stations. Major redesigns in the existing Mobile Commerce system may be required to support assisted transactions. Such redesigns are usually at the expense of degraded quality or complex customer and merchant operations. Thus, there is a need to provide systems specifically designed for merchants who need Mobile Commerce solutions for assisted transactions.
Consumer payment devices have been developed in recent years. Examples are provided by the parent of this present application, which is reproduced herein.
There are prior art mobile stations, in which the control card includes a subscriber identification unit, such as the SIM (Subscriber Identity Module) used in GSM (Global System for Mobile Communications) standard based systems. The SIM comprises a control unit CPU (Central Processing Unit), program memory ROM (Read Only Memory), data memory suited for long-term storage EEPROM (Electrically Erasable Programmable Read Only Memory) and operation memory suited for saving data during use RAM (Random Access Memory). For using the mobile station, a PIN (Personal Identification Number) saved on the SIM may be given, generally when the mobile phone is switched on. Other user-specific information, such as telephone numbers, messages, etc. can also be saved in the data memory of the SIM.
There are now also mobile phones, which have a data connector for connecting an external data processing unit, such as a portable computer. Thus the mobile phone can be used as a means for data transfer between the portable computer and some other data processing equipment through a radio communication network. In this way it is possible to establish a connection e.g. to the user's bank for checking the balance and effecting payments. However, an arrangement of this kind is not very practical, because a separate cable is needed between the computer and the mobile phone. In addition, the computer must be available for establishing e.g. a bank connection.
Wireless systems, so called smart cards or payment cards, are also known, the cards being mostly used in payment applications, such as making payments in buses and public telephones. Smart cards like this generally include a central processing unit, a program memory and a data memory. The internal operation of the card in use is controlled by the CPU in accordance with the program code stored in the program memory. The data memory is used for saving information relating to the intended use of the smart card, such as its value in money. For performing the payment transaction, the card also contains means for data transfer, such as a transmitter/receiver based on electromagnetic induction or capacitance. A disadvantage of smart cards of this kind is, e.g., the fact that several different cards may be needed for different kinds of payment, and so the user must carry a large number of cards. In addition, when the amount of money loaded in the card has been consumed, one needs to buy a new card or load a new amount of money in the card at a sales outlet offering a loading service.
The Japanese patent application JP 4 083 447 presents a mobile phone to which it is possible to add more properties by means of a separate memory card. An application like this is preferably arranged for a certain use, such as for increasing the saving capacity or the telephone number memory. Applications like this are based on a method in which the central processing unit of the mobile phone reads the data saved in the applications (memory cards) and operates in a predetermined way required by the data. A disadvantage of this method is the fact that the functions needed for performing different operations of the applications must be programmed to the central processing unit CPU in advance, whereby the development of new applications also requires changes in the programs of the central processing unit.
The international patent application WO 91/12698 presents a mobile phone to which it is possible to add properties by means of a separate add-in card, such as a smart card. In this way it is possible to restrict the use of the phone by preventing foreign calls, long-distance calls or calls to service numbers, for example. The information about call restrictions is saved on an add-in card, which the user has to install in the mobile phone when it is being used. Thus the main use of this method is to prevent the use of some properties of the mobile station.
Automatic identification and data capture technologies are increasingly being used to identify and track items. Radio Frequency IDentification (RFID) transponders, also known as tags or tokens, provide a means of obtaining data without direct contact such as is needed with magnetic strip or bar code technology. Such transponder devices have been around for some time and have been standardized—ISO-14443 A/B RFID standard. U.S. Pat. No. 3,713,148 issued to Cardullo et al. on Jan. 23, 1973, and incorporated herein by reference, describes a transponder, which includes a changeable or writable memory. An RFID system consists of a transponder, (also referred to as tag or token), with a unique electronic serial number and a reader device also referred to as an interrogator. The tags are self-contained in hermetically sealed capsules or laminates requiring no external power since they get power by rectifying the energy in a field created by the interrogator and storing the energy in capacitive-type circuitry. Nevertheless, some transponders may be powered with small batteries. RFID tags come in a variety of embodiments from a thin, flat and flexible form-factor (thin type) to small capsules (cylindrical type). An example of a thin form-factor is described in U.S. Pat. No. 5,528,222 issued to Moskowitz et al on Jun. 18, 1996. Although the term “radio frequency” is used, other parts of the electromagnetic spectrum may be used to create the energy field. UHF, microwave and millimeter wave sources may be used by the interrogator depending on the distance between the interrogator and the transponder and material to be penetrated. Commercial examples of RFID transponders are the Texas Instruments' Registration and Information Systems (TIRIS) line of transponders available from Texas Instruments (Dallas, Tex.; www.ti.com).
Transponders such as those from Texas Instruments and others may be embedded in keyfobs, cards or other such items. Gas companies are using keyfob or keychain transponders to identify consumers when they buy gas at the pump and charge it to their gas account (e.g. see http://www.mobil.com/speedpass/). The transponders interact with a fueling system such as provided by Gilbarco Inc.—also know as Marconi Commerce Systems, 7300 West Friendly Avenue, (Greensboro, N.C.; http://www.marconicommerce.com). The fueling system is described in U.S. Pat. No. 6,073,840 issued to Kenneth Marion and assigned to Gilbarco Inc., said disclosure is hereby incorporated by reference. Use of keyfobs adds another thing for a consumer to carry and worry about losing. For example, if one leaves the keyfob with another, such as valet parking attendant, it is possible for the attendant to use the keyfob to fill-up many cars while the owner is having dinner or other activities.
There is also a need to allow consumers to collect coupons from other transactions at different establishments. For instance, consumer may wish to collect coupons from mail inserts, newspapers, and newspapers and redeem these hardcopy coupons. The use of hard copy coupons is time consuming and troublesome for the consumer.
Furthermore, use of transponders in the form of keyfobs on keyrings have a problem when stored near certain keys which transmit their own codes. Many automobiles are now being manufactured with a microprocessor embedded in the key which sends a signal to a security system coupled to the ignition system. Without the correct code transmitted by the key, the automobile won't start. But, the keyfob transponder interferes with the coded signal and thus the automobile will not start because the security system can not read the code from the processor in the key. For example, user information regarding the model year 2000 Jeep includes warnings about RFID transponders on the same key ring as the ignition key. FIG. 1 shows a typical transponder to be used on a key ring 3. Transponder 1 is a typical transponder in the form of a keyfob as described above, 2 is a key with embedded processor manufactured to interact with the security system of an automobile. The security system will only allow engine to start if a correct code is transmitted to the security system from the processor embedded in the key. Transponder 1 interferes with the reception of this coded signal.
Additionally, the transponder on a key ring is inconvenient when the consumer is at a drive-through window and must turn off the car in order to access the keyfob on the key ring. Thus, there is a need to have a transponder located away from the key ring associated with the key to the ignition system of an automobile.
In another example of identification systems, some grocery stores are now providing for self-check, wherein the buyer scans their own groceries using bar codes. Additionally, many stores are saving money by not pricing each item but use bar code scanning and shelve area pricing as a means to convey price information. However, sometimes an item may have been moved from its proper location and a means is needed to verify a price. Symbol Technologies, Inc. (Holtsview, N.Y.; http://www.symbol.com) offers a Portable Shopping System. When a shopper enters the store, they are issued a scanner with which they can scan items to determine price and maintain a running total of their purchases. However, the shopper must still go to checkout and present hard copy coupons, which the consumer had to clip, sort, file, and redeem at checkout. At checkout the coupons are also scanned individually, which leads to delays and lines. The consumer must also provide cash, credit or debit card to pay for the goods. Thus there is a need for a device, which a consumer can carry with them which captures, stores and download coupons, provides a way to keep track of their purchases, and provides a means for automatic payment.
In another example of automated shopping, U.S. Pat. No. 5,729,607 issued to Schkolnick et al. on Mar. 17, 1998 and assigned to International Business Machines describes an intelligent shopping cart. Groceries may be labeled with thin transponders. The transponders on the groceries identify the items and their price. The use of the transponders allows a customer to use a cart as described in the Schkolnick patent or pass through an energy field created by an interrogator and the groceries purchased will automatically be identified and the amount totaled. However, the consumer must still open a wallet and fumble with cash or debit/credit cards. Thus, there is a need to have a payment system associated with an item which a consumer can wear or hang on their person to facilitate automatic payment.
U.S. Pat. No. 6,078,806 granted on Jun. 20, 2000, entitled METHOD FOR USING APPLICATIONS IN A MOBILE STATION, A MOBILE STATION AND A SYSTEM FOR EFFECTING PAYMENTS from which the present application is a continuation-in-part and assigned to the same assignee provides a method of affecting payments using a mobile station or Personal Trusted Device (PTD).
Thus, for the above reasons, there is a need to have and Mobile Commerce system in which the consumer can retain the mobile commerce payment device in their possession. Additionally, there is a need to provide the merchant with systems to support assisted transactions without added complexity or downgrading customer service.